Pricing and partnerships
GSK also offers preferential pricing as well as not-for-profit pricing of its antiretrovirals (ARVs) to developing nations which helps to improve access to the needed drugs. The program reaches 69 of the world's poorest countries. In addition, approximately 75% of the company's manufactured vaccines are sold to developing countries on a tiered-pricing plan.GSK has established community investment activities and partnerships that foster healthcare practices in places such as sub-Saharan Africa, Asia, and South America, and has launched several partnerships aimed at finding solutions for global healthcare problems.
"Developing countries face multiple issues on a systemic basis that negatively affect health outcomes for their citizens," says Jon Pender, vice-president for intellectual property and access at GSK, about the company's global healthcare efforts. "Fundamentally, poverty both makes people sicker and makes it harder to tackle healthcare challenges. Many people living in poverty do not have enough food or clean water. In this context, a healthcare system may exist only in name or only in isolated pockets within a country. For example, Africa suffers 24% of the global disease burden yet has only 3% of the world's health workers and 1% of the world's health budget with which to tackle it. There is no way you can get those numbers to add up to adequate healthcare provision. Together, the public and private sectors and civil society have helped to galvanize more resources for global health and reduce the barriers to access to medicines. GSK sees itself as a part of this movement and is specifically addressing issues where our talents and resources can be deployed to maximum benefit."
A major challenge with regard to developing and delivering needed medicines to developing countries and neglected populations has to do with the long-standing reality of the economics behind R&D, adds Pender. He points out that developing a new medicine or vaccine typically takes 10 to 12 years and costs around $1 billion, including the costs of failures. Traditionally, the lack of a viable commercial return on this investment for diseases that are not prevalent in industrialized markets meant that little research was conducted on these diseases. Today, however, more attention is being paid to previously neglected diseases, such as tuberculosis (TB) and malaria, and new approaches that share the risks and costs of R&D are being pursued, he says. Through product-development partnerships with organizations, such as the PATH Malaria Vaccine Initiative (MVI) and the TB Alliance, the pharmaceutical industry is developing new tools to combat theses diseases.
The past two years have been particularly important for GSK in this regard. In addition to establishing the open research laboratory in Spain, in 2010, GSK made available to the public more than 13,000 potential malaria targets to help scientists globally focus on finding a malaria treatment. The company is also working with PATH–MVI and the Bill & Melinda Gates Foundation to develop a vaccine against malaria. The vaccine is in Phase III clinical trials at 11 sites across seven countries in Africa.
The company also established an R&D unit focused on developing late-stage products and formulations for diseases that affect populations in the emerging markets. Other pharma companies are involved, including Amgen, which is working with GSK to make its osteoporosis medicine, denosumab, available in developing countries. Gilead is partnering with GSK to make its drug for hepatitis B, tenofivir, available in China. India's Dr. Reddy's and GSK worked together to move two new cardiovascular branded generic drugs for developing-country populations into development. The R&D unit, meanwhile, has four ongoing late-stage projects in respiratory disease, urology, dermatology, and cardiovascular disease. These projects involve working with regions and countries to understand fully the local needs and to tailor clinical trials to those needs.